Despite recent ‘Black Swan’ events such as the ongoing Russia-Ukraine war, the pandemic, and trade disputes, GlobalData analysis finds that Environmental, Social, and Governance (ESG) remains a long-term strategic priority for tech service providers to enterprises.
According to research conducted by the leading data and analytics company, ‘Black Swan’ events have affected businesses’ short-term priorities, alongside broader changes to global trade and the ongoing digital transformation of enterprises.
Robert Pritchard, Senior Analyst at GlobalData, said: “ESG progress during 2022 in enterprise tech was solid, with a tangible move towards delivering results following previous hype. Most leading service providers now actively track and report on their ESG targets. Tech service providers remain committed to long-term targets across ESG as part of their corporate ethos and strategies, dating out as far as 2030, 2040 and beyond.”
ESG is now all about tech companies delivering results for enterprise customers. Product and service innovations can deliver operational efficiency, enhance productivity, and ultimately improve customers’ bottom lines.
Pritchard adds: “It’s not just the enterprise customer that benefits. Tech service providers can create new revenue streams with new services that address the ESG market, both with new products – sometimes co-created with customers – and in providing platforms to help report on areas such as sustainability and energy usage along the supply chain to meet Scope 3 targets.”
Progress will continue due to the United Nations COP program, but driven also by customer demand, regulation (in the EU in particular), government interventions, and the influence of stakeholders such as investors and talent.
Pritchard concluded: “The climate crisis is evident around the world – and many challenges need addressing in the social and governance fields. But it is not all gloom and doom: genuine progress is being made to address the climate crisis, and tech ESG solutions can deliver new revenue streams, and cement longer-term customer relationships at a time when many legacy products and services continue to commoditize.”
